Ekiti economy: The promises, the optimism

In Ekiti State, it has been a deluge of promises from those jostling for the electorate’s votes. Hopes have been raised as politicians move from one part of the state to another canvassing for votes. These are, indeed, desperate moments in the state.

Less than seven days from now, the people of Ekiti State will be going to the polling centres to elect a governor that will pilot the affairs of the state in the next four years.

Top on the list of expectations and aspirations of the people of the state is the emergence of a governor that will take the state to the next level, economy wise.

Those who spoke with BDSUNDAY said that although the state ranked among the lowest in terms of revenues accruing from the federation account, there were, however, lots of mineral deposits, arable farm lands with weather that favours agriculture, and tourist centres capable of enhancing the state’s resources, if properly harnessed.

Ekiti, created out of the old Ondo State by the Sani Abacha regime on October 1, 1996, is said to be one of the smallest in the country by size (2,543 square metres and 31st  out of 36 states) and by population (2,737,186 million and 29th out of 36). Its monthly earnings from the Federal allocations are usually low as it is said to receive an average of N3 billion.

 Analysts, however, say that the meagre allocation to the state should not be an alibi for non-performance. They are of the opinion that forward-looking leaders must and should wear their thinking caps to create wealth giving the natural endowments in their domains.

Soji Apampa, executive director, The Convention on Business Integrity (GTE), toeing the path of the above reasoning said that whosoever that emerges as the next governor of Ekiti at the election must realise that it is all about the people and not self, and that service must be the watchword.

“It is about time people stop telling us that Ekiti receives one of the lowest allocations from the federation account. It is high time people began to look beyond whatever that comes from Abuja, and rather sit down to critically ask themselves, ‘how are we going to attract private sector investment that will be appropriate for inclusive business?.’ By inclusive business I mean, business that will integrate the poor into the value chain. Business that will create opportunities for smaller businesses that will put food on the table of the poor people. States must attract such businesses that can bring good returns to the investors and also make strong social impacts,” Apampa said.

According to him, “States like Ekiti need to look at those impediments to investment and ensure that they are addressed. Instead of focusing and wholly relying on allocations from Abuja, they must look to Agriculture which in real sense employs a large percentage of the populace. It is possible for people to go into agro-allied industry and make great impact in the state and in the lives of the people. There are opportunities in extension services. I want to encourage whosoever that will emerge governor in the June 21 election to look into those areas. I have mentioned agric, there are many other areas also”.

The executive director further suggested that Ekiti can encourage young school leavers and fresh graduates to go into compost making.

“Ekiti is one of the states in South West that is not well off in terms of finance, but its leaders can look within to make it viable. More importantly, government must be people-oriented. Young school leavers and fresh graduates can make a living by going into composting. I don’t mean scavenging, but turning waste (organic materials) into manure that will be of high demand. Making Ekiti investor-friendly is the greatest task before whoever that will emerge after the election as the governor of the state,” Apampa emphasised.

Speaking with BDSUNDAY, Tony Nnadi, secretary general, Lower Niger Congress (a group that pushes for the self-determination of ethnic nationalities that allege marginalisation in the Nigeria arrangement), said he had no interest whatsoever in whoever that would emerge winner at the election. He said that whatever election that would be held on the basis of the existing constitution would be illegal and not in tandem with the aspirations of the people of the state.

“When you employ somebody, you give him/her job descriptions. If you elect somebody, what he is supposed to do in office is spelt out in the constitution. In our own case, the constitution is faulty and as a result the elected governor is already standing on a shaky and illegal ground.  So, how can anything good come from an elected officer relying on faulty constitution? So, all the shenanigans in the political sphere were brought about by a constitution that is not written in the interest of the Nigerian people. People’s rights have been taken. The constitution that spelt out our enslavement, unless it is changed there cannot be a good governor, let alone what he has to offer. Let nobody be deceived,” Nnadi said.

Indigenes of the state, who spoke with our correspondent in Ado-Ekiti, capital of the state that prides itself as “The Land of Honour”, said that the would-be governor must attract local and foreign investors to set up industries, as well as develop the agricultural sector, which is major employer of labour. They also tasked the in-coming state executive officer to strive to make Ekiti an economic hub.

Remi Martins Bamigboye, a politician from Ikole, said the state was more or less a civil service one, and as a result there’s the need to woo both local and foreign investors to establish industries in critical sectors of the economy.

As an agrarian state, Bamigboye said:  “In another four years, agricultural sector should be developed properly to boost food production and possibly, sell to other states and even export abroad.”

Dele Falana, a legal practitioner, said the governor should develop agriculture through loans to farmers, farm extension, provision of free and subsidised seedlings, among other incentives.

“Also you know, Ekiti has no industries; the would-be governor needs to work on this area to encourage investors to invest,” he added.

Falana also spoke about the need to improve the standard of education in the state, which he noted was very important if the economy of Ekiti must be boosted.

Tayo Olatoye, an analyst and indigene of the state, advised that whosoever that emerges as governor must be able to maintain the needed peace to bring in investors and to invite Ekiti indigenes who have the wherewithal to help the economy through huge investments.  

According to him, “the winner must have the personality that would give investors confidence to invest in Ekiti economy. There is also the need to improve on the internally generated revenue (IGR) of the state. I would also expect an investment summit six months after inauguration”.  

Akeem Bakare, another politician in Ado Ekiti, wants the governor to embark on industrialisation of the state.

He said the politician should also provide the enabling environment to allow SMEs thrive. “The SMEs is the engine room for any economy, and this can be done in Ekiti. Apart from contributing meaningfully to the economy, it is also largest employer of labour”. 

Bosun Adegbemiro, a youth corps member wants government to give priority attention to 

agriculture and tourism as well as education.

He said in as much as youths formed substantial part of the population, government must create jobs for them, whether through empowerment or engaging in agricultural programmes.

John Ajayi, publisher, Marketing Edge Magazine, who strongly believes that the incumbent will be returned, said: “We expect that current Governor John Kayode Fayemi will win the election so that he can continue with his current economic programmes with its arrowhead on the 8-point agenda.

“We expect that he will continue to give priority attention to agriculture and industrialisation of the state which he has been trying in the area of infrastructural provisions, and I am sure he will not relent”.

While on the last lap of his campaign to Idege, Igimookogo, Igirigiri, Ita Eku, Olorunsogo, Ilokun, Egbewa, Ajebamidele, Moferere and Olorunda communities, Fayemi assured that he would continue to pursue issues of water provision, road construction, construction of neighborhood markets and extension of electricity in some new areas in the communities, if returned.

Sounding optimistic about victory for the incumbent governor, Lai Mohammed, publicity secretary of APC, said: “Fayemi’s achievements are there for anybody to see, feel and touch unlike that of PDP”, adding that “APC states today, including Ekiti State, one can perceive and see the magnitude of works in the areas of job creation, sound education, infrastructural development, security, health among others.

“Our track records are there in APC controlled-states for everybody to see and I want to assure that you that we are not stopping all these good works, that is our political edge over the opposition parties.”

Afe Babalola (SAN), an elder statesman, said  Fayemi had invested so much in the state socio-economic wise, particularly education, which he said, “is the best legacy any government can give the governed”. 

The battle for three

 Although, 18 political parties will field candidates on Saturday for the gubernatorial election in Ekiti State, only three candidates, namely, Kayode Fayemi, incumbent governor on the platform of All Progressive Congress (APC); Ayodele Fayose, People’s Democratic Party candidate and Opeyemi Bamidele of the Labour Party candidate, are said to be really in the race.

Of all the candidates, the duo of Fayemi and Fayose are struggling to ensure that the people of Ekiti elect them the second time, thereby trying to break a jinx, to the effect that nobody had won election twice in the state, in the past.

A pundit, who craved anonymity, said that the recent visit of President Goodluck Jonathan and Vice President, Namadi Sambo, to Ekiti State, for the PDP rally in solidarity with Fayose, and their promise to massively develop the state at all cost “drew voters’ sympathy” for the umbrella party.

Sola Akinyede, a senator and PDP chieftain in the state said that Fayose’s administration in Ekiti witnessed “unprecedented socio-economic development” and that if elected, the former governor was capable of improving on the sterling performance in office.”

Akinyede also recalled President Jonathan’s promise to the state that government would initiate programmes that would improve socio-economic development of the state and would take Ekiti State as one of the economic centre points.

“Ekiti State’s economy is on the verge to buoyancy if Ekiti people agree to vote Ayodele Fayose on Saturday”, he said.

Opeyemi Bamidele, who has not been tested as governor, unlike Fayemi and Fayose, in what he termed  ‘My roadmap for Ekiti’s development’, pledged: “Our government, within the first twelve months in office, will positively translate expectations of Ekiti people into reality through the commencement of programmes aimed at providing specific and direct interventions in education and literacy; agricultural development and rural transformation; vocational training and entrepreneur development; micro-credit facilities; access to water and sanitation as well as adequate and affordable health care services”.

According to him, “regardless of what my opponents and critics would say about me, I don’t think anyone who knows me can sincerely be in doubt of my passion to serve”.

 The challenge

 Analysts are of the view that many Nigerian states are not viable as their governors rely heavily on federation accounts, which have remained on steady decline owing to crude oil theft, huge budget for insecurity in the Northern Nigeria and discovery of oil alternatives by former Nigeria’s buyers, notably the United States of America. As at March this year, the Excess Crude Account (ECA) depleted to $2.5 billion, from $8.65 billion by the end of 2012, while Nigeria’s external reserves dropped 11 percent from last year’s peak of $48.85 billion.

 By April 2014, a total of N634.721 billion was shared to the three tiers of government in the country as federal allocation for the month of April, 2014, was N6.659 billion less than the N641.380 billion shared to the three tiers of Government for the month of March 2014.

Amid the depletion of ECA,  recent states’ IGR data released by the National Bureau of Statistics (NBS)  shows the most income generating state from each region showed that for the South-West region, Lagos led with N219.2 billion, South-South: Rivers N66.2 billion, South-East: Ebonyi N14 billion, North-Central: Benue N8.4 billion, North-West: Kaduna N11.5 billion, and North-East: Adamawa N4.6 billion.

Collectively the six western states of the federation generated N265.2 billion and of this total, Lagos contributed the lion’s share, with 95 percent (N219.2 billion), compared with Ekiti with just 1 percent (N3.78 billion).

 The would-be winner must, therefore, fashion out strategies to improve the N9 billion yearly internally generated revenue (IGR) of Ekiti State without necessarily levying heavy taxes on the people.

However, it must be stressed that the present administration has made some strides in the area of IGR, considering obvious economic distinctions between Lagos and Ekiti states. Using the 2006 census, the population of Ekiti is 2.398 million, while that of Lagos is over 20 million, implying that both hands are not equal. But that is no reason for contestants to relax.

Biodun Oyebanji, commissioner for economic planning, recently disclosed that the state targeted N15 billion last year but ended up having N9 billion returns, stressing that this year’s IGR target is N20 billion.

By implication, the three candidates are expected to have clear-cut plans to attract more investors and draw down manufacturing industries from Lagos and Ogun states using favourable tax policies and investment climate. With reduced taxes and proper management of security network, investors are likely to at the minimum extend their factories to the state, away from states where there are over population and high factor costs.

NBS’ 2010 data show Ekiti’s unemployment rate was 20.6 percent, while that of 2011 was 12.1 percent. This shows improvement in job creation. But more needs to be done in this area, say economic watchers, as many people in the state still wallow in poverty.    

Recently, Folorunso Aluko, director-general, Ekiti State Job Creation and Employment Agency, blamed the Federal Government for the high rate of unemployment in the country.

According to him, the introduction of the Subsidy Reinvestment Programme was in response to the efforts made by the South-West governors to reduce unemployment and poverty in the zone. But analysts say the contestants must have the agenda to create jobs for mostly educated population.

They added that economics must trump politics as the need for infrastructural development such as roads, better equipment of schools, water, among others need to remain on the front burner.

ZEBULON AGOMUO, ODINAKA ANUDU, REMI FEYISIPO, RAZAQ AYINLA